"The encouraging performance of our two top exports – semiconductor products and garments and textiles – has kept the growth momentum of exports, considering that the rise in fuel prices continue to adversely affect economies worldwide," Trade Senior Undersecretary Thomas G. Aquino said.
Aquino assured that "our year-to-date total exports remain positive at 4.04 percent."
Philippine exports of garments and textiles rose by 7.62 percent year- on- year. The sector is seen to rise by eight percent to 10 percent for the whole of 2005.
Data from the Semiconductor Industry Association (SIA) showed that worldwide shipments of semiconductor products were affected by the drop in price of (Dynamic Random Access Memory) DRAM chips.
DRAM chips are used widely for personal computers and workstations.
Since DRAMs are one of the largest segments of the total semiconductor market, any significant change in price will have an impact on total chip sales.
SIA projects annual global sales to grow by six percent in 2005 and 9.8 percent compounded annually through 2008, to be driven mainly by demand for personal computers and wireless handsets.
The Semiconductor and Electronics Industry of the Philippines, Inc. (SEIPI) has revised its growth projections for the electronics sector from five percent to 10 percent this year.
Exports of non-semiconductor electronic products such as consumer electronics and laptops are expected to stabilize when the investment of Uniden, Quanta (laptops), and Kolin (flat screen television) and adjustment in product lines of Toshiba and Hitachi begin to be operationalized.
Toshiba transferred its production of notebook PCs to China, but increased its production of hard disk drives in its Laguna plant.
Hitachi Philippines transferred its production of 3.5-inch drives for servers to Thailand, but plans to double its production of hard drives in the Philippines from eight million in 2004 to 16 million in 2005.
The void left by Toshiba and Hitachi continued to be felt in May, greatly contributing to the 26 percent decline in non-semiconductor electronic products exports.
The decline in exports of non-semiconductor electronic products was a major factor in slowing down the growth of Philippine exports to 1.1 percent from $3.259 billion in May 2004 to $3.299 billion in May this year.
Other key drivers in May, with growth in exports include auto parts (wiring harness) at 12.66 percent, home furnishings at 10.59 percent, and food at 10. 48 percent.
Accounting for 18.25 percent of total export receipts, the US was the country’s top export destination for May.
Japan, which was the top market last year and up to April this year, was the second major destination, cornering about 16.49 percent of total exports.
Philippine exports to China increased significantly during the five-month period, making it the third biggest market for Philippine products.